Ben Livshits retweeted
We were able to fine tune an open weight model (Qwen3.5-9B) on proprietary internal data at @coinbase, and it out performed frontier models, at much lower cost and speed, for a specialized task (fraud prevention in this case).
I think we'll see more of this pattern inside companies. The frontier models are amazing generalists. But increasingly you'll see specialist models out perform on more narrow tasks, either working on teams, or by themselves.
We're making it easy to fine tune models internally for our employees. We even have a skill for it in our internal harness that makes it easy to spin these up and start training them:
"/fine-tune-and-serve-llm I want to fine-tune Qwen for payments risk review. help me get started"
I imagine we'll have some backend services that could be replaced entirely by this new architecture.
Ben Livshits retweeted
My wife went for a party trip to Ibiza with her girlfriends
I didn't hear from her for the whole weekend
Finally, she texted me explaining "her German number doesn't work abroad and calling was expensive"
I laughed out loud
How silly is she?
Thanks to the European Union, roaming charges were abolished across the EU years ago
I tried to explain this to her, but she seemed very uncomfortable
Most likely embarrassed that she forgot such basic consumer rights
Sometimes I really worry she doesn’t understand how much the EU has improved our daily lives
Cyber is having a moment
Across 21 major software companies, including Apple, AWS, Microsoft, and Google:
- Reported critical vulnerabilities never cleared 100 per month in four years
- Since spring they've jumped to over 600 per month
Charts of the Week: a16z.news/p/chart-of-the-wee…
Ben Livshits retweeted
Catalog of incorrect AI predictions.
Doomers from the rationalist cosplay community are left out, presumably because their predictions have a near 100% failure rate.
When people proudly proclaim that we need to 'act now' or make laws because something is inevitable, point them at this list and tap it loudly because it ain't.
boyswhocriedai.lovable.app/a…
Ben Livshits retweeted
WOW! The $8 AI Machine!
Something extraordinary just happened and it changes what “local AI” can mean.
I am testing it tonight. Thus far it shows many possibilities…
So what it this $8 AI device?
A developer going by slvDev has forced a 28.9-million-parameter language model onto an ESP32-S3 microcontroller that costs roughly eight dollars.
Not a Raspberry Pi.
Not a Jetson.
An eight-dollar microcontroller.
The model runs completely offline, generates coherent short stories at about 9.5 tokens per second, and draws power measured in the same range as a small LED.
This is more than a hundred times larger than the previous record for the same class of chip (the earlier 260,000-parameter TinyStories experiments).
For perspective, the original ChatGPT sat at 117 million parameters. We are now running a model roughly a quarter of that size on silicon you can buy for the price of two coffees.
How the Impossible Became Possible
The ESP32-S3 has only 512 KB of fast SRAM, 8 MB of PSRAM, and 16 MB of flash. Conventional wisdom said a model of this size simply would not fit.
The breakthrough is architectural, not brute force.
Most of a language model’s parameters live in a giant embedding table a lookup table you mostly read from, not compute against.
Drawing directly from Google’s Per-Layer Embeddings technique (the same family of ideas used in the Gemma models), the developer moved the bulk of that table roughly 25 million parameters into flash memory and memory-mapped it.
The chip only needs to pull about six rows, roughly 450 bytes, for each new token. The remaining dense “thinking” core stays in the fast SRAM (around 560 K of active working memory). The model is stored at 4-bit quantization and occupies about 14.9 MB total.
The result is a system that feels almost free to run. The heavy parameters sit quietly in flash and are sampled sparingly. The little core does the real work. It is elegant engineering of the purest kind.
What I Am Doing With It Right Now
I have the boards on the bench in the garage lab. The first units are already talking short, coherent stories appearing on a tiny wired display, generated entirely on the chip with no Wi-Fi, no API key, no cloud round-trip. Latency is local. Privacy is absolute. Power draw is low enough that battery operation becomes interesting.
I am treating these as the first generation of true $8 AI machines. Early tests are focused on three practical directions.
- Embedding the model into simple nodes.
- Pairing it with local voice front-ends
- Exploring whether multiple of these chips can be networked as a lightweight swarm.
The model is deliberately limited. It was trained on the Microsoft TinyStories dataset and is excellent at coherent narrative, not at open-ended question answering or tool use.
That is a feature, not a bug. It forces us to design systems around what the silicon can actually deliver instead of pretending every edge device needs a frontier model.
Real Use Cases That Suddenly Become Practical
Once you accept that a capable language model can live for eight dollars and run without the cloud, a new class of devices becomes possible:
This is the opposite of the current trajectory that wants every intelligent act to travel through a remote server. It is the beginning of intelligence that is cheap enough, private enough, and local enough to become infrastructure rather than a service.
We have spent years watching model sizes explode upward. The more interesting frontier may be the opposite direction: how small, how cheap, and how local can useful intelligence become? An eight-dollar chip that can tell coherent stories is not a toy. It is a proof that the lower bound keeps moving.
The open repository is at github.com/slvDev/esp32-ai
I will keep testing, measuring, and reporting what these little machines can and cannot do. The age of abundant local intelligence just got a little more real, and it arrived wearing an eight-dollar price tag.
Ben Livshits retweeted
Wtf this is INSANE.
This is the first open source model from a US lab that codes at frontier levels.
The open source frontier no longer exclusively belongs to China.
The US is officially in the OS model race!
Aloha! 🌺 Meet Ornith-1.0, a family of open-source LLMs specialized for agentic coding.
Ornith-1.0 spans the full parameter sizes including 9B Dense, 31B Dense, 35B MoE, and 397B MoE. It achieves state-of-the-art performance among open-source models of comparable size on coding benchmarks including:
✅Terminal-Bench 2.1(77.5)
✅SWE-Bench(82.4 on verified, 62.2 on pro, 78.9 on Multilingual)
✅NL2Repo(48.2)
✅SWE Atlas(41.2 on QnA, 42.6 RF, 39.1 TW)
✅ClawEval(77.1)
Post-trained on top of gemma4 and qwen3.5, Ornith-1.0 employs a novel self-improving training strategy in which reinforcement learning is used to generate not only solution rollouts, but also the task-specific scaffolds that drive those rollouts. By jointly optimizing the scaffold and the resulting solution, the model generate higher-quality solutions in agentic coding.😎
All models are released under the MIT license, enabling full commercial and research use.
📖Tech Blog: deep-reinforce.com/ornith_1_…
🤗Huggingface: huggingface.co/collections/d…
Ben Livshits retweeted
1 - So GLM 5.2 is 700b parameters (ish)
2 - 4x DGX Sparks can supposedly handle up to 700b parameters (give or take)
3 - GLM 5.2 is supposedly in striking distance of the performance of GPT 5.5 and Opus 4.8. In my brief tests, it's really not shabby at all.
4 - So for $20k, you can get near the frontier on your table.
5 - Extrapolate the trend, and you could have mythos/5.5 pro - class models in your dining room for the cost of a cheap car less than five years from now. Even without extrapolation, we're already the near frontier running locally.
6 - Paying real api costs, I could easily blow through $3,000 per month coding and running agents. The machine pays for itself in 6-7 months conservatively.
7 - In 3-5 years, most power users of AI will self-host.
8 - Am I missing something?
Ben Livshits retweeted
1. ZK is the only way to truly scale blockchains
2. Formal verification is needed but won't be enough to avoid security bugs
3. Ethereum needs to use multiple provers/verifiers. It can't depend on only one
This is cool--Karpathy's autoresearch idea applied to a real load-bearing problem: minimizing the size of a quantum circuit breaking DL over secp256k1.
Recall that the smallest quantum circuit currently known (from a group of researchers from Google and more) was not released publicly, and the authors only proved knowledge of a quantum circuit via zk.
This is basically completely the opposite: the smallest quantum circuit will be publicly available, and anyone or any agent/AI in the world can contribute to it!
How the lower bound develops for the next few weeks will be very interesting to watch. My bet is on the move to post-quantum cryptography moving to an even more accelerated timeline due to this project.
I beat one of the best published quantum circuits for breaking Bitcoin.
And I have no formal training in quantum cryptography. Using just AI agents, I improved it by ~2x. But I haven’t beat Google’s best classified circuit yet.
So, today I'm launching ecdsa(dot)fail -- an open competition for researchers, autoresearchers, and agents to beat Google.
Download the CLI, point your agent at it, and start optimizing.
So Jane Street is going public because obviously they see the future where the model labs compete directly with them in the market.
The strategic decision is therefore to become a a specialized infrastructure harness for a future frontier model.
Tellingly they point out that the latency constraints mean there is no time for inference at the GPU layer, or agentic tool use at the CPU layer, only reflexive heuristics at the FPGA layer.
@yminsky is trying to fend off future model lab competition by making Jane Street indispensable to a future AGI.
interesting strategy
Ben Livshits retweeted
Beautiful piece on investing in the AI trade
xitter.cf/ramahluwalia/status/20…
tl;dr
- AI investing or sector as a whole is now operating the power law game ie one or two players own a LOT, and rest go to zero (expensive science projects with a pitch deck, unicorn valuation (for now), and zero revenues. Meanwhile Anthropic kills it and owns everything
- AI isn’t flattening the economy (equal access or upside), rather steppening it (winners takes all)
- average isn’t safe. If you’re thinking you can spread your capital and win, you’re in for a violent surprise. Pick the winners, cut the losers and do it now
Wonderful read, worth your time folks
FEAST OR FAMINE
We have a K Shaped economy already.
AI is a knife that accelerates that.
@GavinSBaker makes a great point.
Anthropic has added tens of billions of ARR in a matter of months. That scale that took elite software companies like $SNOW, $PLTR, and Databricks ten years to generate.
The feast or famine is even sharper in the AI Lab ecosystem.
There are 63 AI Labs that have unicorn valuations that also have zero revenue.
Meanwhile, two of them are approaching trillion dollar valuations.
What started as a 'Winner take Most' market is shifting to a 'Winner Take All' market.
AI is not democratizing outcomes equally.
It is amplifying power laws.
The feast is enormous, but reserved for very few.
For everyone else, the famine arrives faster.
AI is not flattening the economy.
It is steepening it.
The biggest winners will look like monopolies before the market fully understands what happened.
The rest will be expensive science projects with pitch decks (not unlike the search engine wars in the late 90s).
From a markets perspective, that will also lead to yet greater market concentration in a handful of names.
For investors, here are the implications:
(1) AI is not a sector bet.
It is a power-law bet.
The opportunity is not owning 'AI exposure.'
The danger is owning the expensive middle - companies with AI narratives, unicorn marks, and no revenue.
(2) In a Winner Take All market, average is not safe.
Average is where capital goes to die.
(3) Own the bottlenecks.
The feast accrues to firms controlling scarce resources.
(4) Valuation discipline
The winners may deserve richer multiples.
The losers deserve zero.
(5) Outside of the obvious picks and shovels, businesses and models that are beneficiaries of AI transformation.
Ben Livshits retweeted
Try to build as much code as possible over the next few months. The prices you are seeing now for AI will probably not last too long.
🦔Microsoft canceled its internal Claude Code licenses this week after token-based billing made the cost untenable, even for a company with effectively infinite cloud resources. Uber's CTO sent an internal memo warning the company burned through its entire 2026 AI budget in just four months. American AI software prices have jumped 20% to 37%, and GitHub (owned by Microsoft) is dropping flat-rate plans for usage-based billing across its products.
My Take
The AI subsidy era is ending in real time. The same company that put $13 billion into OpenAI and built the Azure infrastructure powering most of Anthropic's compute just looked at the bill from a competitor's coding tool and decided it was not worth paying. That is not a productivity failure on Anthropic's end. Token-based pricing is forcing every enterprise customer to confront the actual cost of running these models at scale, and the number turns out to be far higher than the flat-rate experiments suggested.
This ties directly to my Gemini Flash post yesterday. Anthropic, OpenAI, and Google all raised effective prices in the last six months. Enterprises that built workflows assuming AI costs would keep falling are now watching annual budgets evaporate in months. Two outcomes look likely from here. Either enterprises scale back AI usage to fit budgets, which slows the revenue ramp the labs need to justify their valuations ahead of IPOs, or the labs cut prices and absorb the losses, which makes the unit economics worse at exactly the wrong moment. Both paths land in the same place, the numbers stop working, and somebody has to take the writedown.
Hedgie🤗
A highlight of @1kxnetwork investments within our thesis on threat-resistant & compliant onchain privacy.
- @0xMiden: chain designed from the ground up for programmable privacy (ZK)
- @zksync: private & customizable prividiums (ZK)
- @inconetwork: user-friendly privacy layer for existing chains (TEEs)
- @SeismicSys: privacy-enabled EVM-based fintech L1 (TEEs)
- @ligero_inc: private account layer for all chains, custom-built for businesses (ZK)
- @0xPredicate: programmable policy infra, for privacy protocols, defi, & beyond
- @fiber_evm: private EVM wallet infra w/ a slick mobile app (ZK)
Here's the exciting bit: (at least) five of the above projects are about to go live this year!
2026 is the year for onchain privacy.
-----
At 1kx, we put our money where our mouth is.
We develop theses and partner with the best founders to realize the shared vision.
Ben Livshits retweeted
The day after the CEO lays off a ton of staff and says:
“Non-technical teams are now pushing code to production with AI”
@coinbase has a major outage on their trading engine, and even their status page doesn’t work.
😂
Ben Livshits retweeted

Gary Marcus@GaryMarcusMay 5
Canada
CanadaConnected via United States App StoreAccount-level information, not a live location or per-post device.
Some things never change. If you don’t understand this one, you don’t understand what’s happening AI.
Marcus, 1998: neural nets have trouble generalizing far beyond the data.
Marcus, 2001, 2012, 2019, 2022, etc: neural nets have trouble generalizing far beyond the data.
Apple, 2025: neural nets have trouble generalizing far beyond the data.
Meta/Stanford/Harvard, 2026: neural nets have trouble generalizing far beyond the data.
Ben Livshits retweeted
anthropic is going after the $300B consulting sector with a new $1.5B consulting arm that seeks to put claude into every mid-size company
this is exactly what deloitte, mckinsey, accenture do... but anthropic is cutting them out. ruthless but imo the economics make sense:
> anthropic will send applied AI engineers to private equity portfolio companies to create custom-claude solutions...
> its a genius model: blackstone alone owns 250+ companies generating $300B in rev, imagine if claude doubles that and takes a fee
why? anthropic's biggest revenue earner is enterprise, their CFO: "Enterprise demand for Claude is significantly outpacing any single delivery model."
> anthropic teamed up with blackstone, goldman sachs and hellman & friedman, each putting up $300M (ZERO consulting firms in the cap table lol)
> private equity become anthropic's distribution model for enterprise. sound familiar...?
> thats because openai announced a similar venture 5 months ago but the explicit difference is anthropic is a major stakeholder in this new venture
brutal for consultants tbh
Ben Livshits retweeted
I might have to take back everything I said criticizing Ethereum rainbows and unicorns. Sometimes rainbows and unicorns are exactly what a community needs.
Very surprised this all came together through donations. Big learning moment for me.
Ben Livshits retweeted
I factored the number RSA1024-1 using my home-built QPU stack; alarming sign that RSA1024 will soon be broken.
I'm choosing Full Disclosure, in the interest of transparency and Science advancement: gist.github.com/veorq/25bee6…
Non-ZK proof that the correct RSA1024 was used: en.wikipedia.org/w/index.php…
@yuvadm your move
Ben Livshits retweeted
OpenAI just released a new open-source model
it's "a bidirectional token-classification model for personally identifiable information (PII) detection and masking in text"
github.com/openai/privacy-fi…
huggingface.co/openai/privac…












































